diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index 851dc08defaf..fb05407ab39a 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -475,6 +475,16 @@ function isChatThread(report) {
     return isThread(report) && report.type === CONST.REPORT.TYPE.CHAT;
 }
 
+/**
+ * Returns true if report is a DM/Group DM chat.
+ *
+ * @param {Object} report
+ * @returns {Boolean}
+ */
+function isDM(report) {
+    return !getChatType(report);
+}
+
 /**
  * Only returns true if this is our main 1:1 DM report with Concierge
  *
@@ -514,6 +524,23 @@ function isExpensifyOnlyParticipantInReport(report) {
     return reportParticipants.length === 1 && _.some(reportParticipants, (accountID) => _.contains(CONST.EXPENSIFY_ACCOUNT_IDS, accountID));
 }
 
+/**
+ * Returns whether a given report can have tasks created in it.
+ * We only prevent the task option if it's a DM/group-DM and the other users are all special Expensify accounts
+ *
+ * @param {Object} report
+ * @returns {Boolean}
+ */
+function canCreateTaskInReport(report) {
+    const otherReportParticipants = _.without(lodashGet(report, 'participantAccountIDs', []), currentUserAccountID);
+    const areExpensifyAccountsOnlyOtherParticipants = _.every(otherReportParticipants, (accountID) => _.contains(CONST.EXPENSIFY_ACCOUNT_IDS, accountID));
+    if (areExpensifyAccountsOnlyOtherParticipants && isDM(report)) {
+        return false;
+    }
+
+    return true;
+}
+
 /**
  * Returns true if there are any Expensify accounts (i.e. with domain 'expensify.com') in the set of accountIDs
  * by cross-referencing the accountIDs with personalDetails.
@@ -646,16 +673,6 @@ function isPolicyAdmin(policyID, policies) {
     return policyRole === CONST.POLICY.ROLE.ADMIN;
 }
 
-/**
- * Returns true if report is a DM/Group DM chat.
- *
- * @param {Object} report
- * @returns {Boolean}
- */
-function isDM(report) {
-    return !getChatType(report);
-}
-
 /**
  * Returns true if report has a single participant.
  *
@@ -3638,15 +3655,16 @@ function getMoneyRequestOptions(report, reportParticipants) {
 
     const participants = _.filter(reportParticipants, (accountID) => currentUserPersonalDetails.accountID !== accountID);
 
-    // Verify if there is any of the expensify accounts amongst the participants in which case user cannot take IOU actions on such report
-    const hasExcludedIOUAccountIDs = lodashIntersection(reportParticipants, CONST.EXPENSIFY_ACCOUNT_IDS).length > 0;
-    const hasSingleParticipantInReport = participants.length === 1;
-    const hasMultipleParticipants = participants.length > 1;
-
-    if (hasExcludedIOUAccountIDs) {
+    // We don't allow IOU actions if an Expensify account is a participant of the report, unless the policy that the report is on is owned by an Expensify account
+    const doParticipantsIncludeExpensifyAccounts = lodashIntersection(reportParticipants, CONST.EXPENSIFY_ACCOUNT_IDS).length > 0;
+    const isPolicyOwnedByExpensifyAccounts = report.policyID ? CONST.EXPENSIFY_ACCOUNT_IDS.includes(getPolicy(report.policyID).ownerAccountID || 0) : false;
+    if (doParticipantsIncludeExpensifyAccounts && !isPolicyOwnedByExpensifyAccounts) {
         return [];
     }
 
+    const hasSingleParticipantInReport = participants.length === 1;
+    const hasMultipleParticipants = participants.length > 1;
+
     // User created policy rooms and default rooms like #admins or #announce will always have the Split Bill option
     // unless there are no participants at all (e.g. #admins room for a policy with only 1 admin)
     // DM chats will have the Split Bill option only when there are at least 3 people in the chat.
@@ -4135,6 +4153,7 @@ export {
     getPolicyType,
     isArchivedRoom,
     isExpensifyOnlyParticipantInReport,
+    canCreateTaskInReport,
     isPolicyExpenseChatAdmin,
     isPolicyAdmin,
     isPublicRoom,
diff --git a/src/pages/home/report/ReportActionCompose/AttachmentPickerWithMenuItems.js b/src/pages/home/report/ReportActionCompose/AttachmentPickerWithMenuItems.js
index b4845e943a74..a31e718933ea 100644
--- a/src/pages/home/report/ReportActionCompose/AttachmentPickerWithMenuItems.js
+++ b/src/pages/home/report/ReportActionCompose/AttachmentPickerWithMenuItems.js
@@ -151,8 +151,7 @@ function AttachmentPickerWithMenuItems({
      * @returns {Boolean}
      */
     const taskOption = useMemo(() => {
-        // We only prevent the task option from showing if it's a DM and the other user is an Expensify default email
-        if (!Permissions.canUseTasks(betas) || ReportUtils.isExpensifyOnlyParticipantInReport(report)) {
+        if (!Permissions.canUseTasks(betas) || !ReportUtils.canCreateTaskInReport(report)) {
             return [];
         }
 
diff --git a/src/pages/tasks/TaskShareDestinationSelectorModal.js b/src/pages/tasks/TaskShareDestinationSelectorModal.js
index 43d4a70a6ba4..cd0d8166770e 100644
--- a/src/pages/tasks/TaskShareDestinationSelectorModal.js
+++ b/src/pages/tasks/TaskShareDestinationSelectorModal.js
@@ -60,7 +60,7 @@ function TaskShareDestinationSelectorModal(props) {
         _.keys(props.reports).forEach((reportKey) => {
             if (
                 !ReportUtils.canUserPerformWriteAction(props.reports[reportKey]) ||
-                ReportUtils.isExpensifyOnlyParticipantInReport(props.reports[reportKey]) ||
+                !ReportUtils.canCreateTaskInReport(props.reports[reportKey]) ||
                 ReportUtils.isCanceledTaskReport(props.reports[reportKey])
             ) {
                 return;